Apparel makers go for developing local brands

FT ONLINE

The country's apparel makers are now focussing more on the local market than before mainly to meet the growing demand for fashion wears, industry people said.

Dozens of export-oriented garment manufacturing companies have already launched their own brands to add value to the local market and have gained popularity.

These garment companies have been supplying apparel to western buyers including H&M, Walmart, JC Penny and Marks & Spencer for decades.

Snowtex and Dekko Group and Energypac launched their own local brands 'Sara', 'Klubhaus' and 'O-Code' respectively in last one year.

In addition, few others including Team Group's Twelve are expanding their business in the country, people involved with the industry said.

Companies such as Beximco, Giant, Epyllion, Evince, Babylon, Amber, Sayem and Sonia are already in the domestic market.

These companies have gained popularity under the brand names including Yellow, Texmart, Sailor, Noir, Trendz, Amber Lifestyle, Plaire and Dhaka Republic respectively.

Artisti, a concern of Milon Garment, and Bar Code and Shoishab have been launched by Smart Jeans Ltd.

Giant Group launched its local brand Trendz in 1998, followed by Yellow in 2004. Later, other companies gradually entered the local market.

Of them, Artisti and Yellow respectively have also opened their outlets in Singapore and Pakistan.

Snowtex Outwear has invested Tk 150 million in setting up its first retail shop 'Sara' at Mirpur, said its managing director SM Khaled.

The main aim is to establish retail business in the local market with ensuring own-designed and quality products at affordable prices, he told the FE.

"We want to sustain our business for a long time even during the period when Bangladesh might not be competitive in the export market," he said.

"We want to establish local brands not only in the country but also abroad," he added.

Mr Khaled said the $130-million annual turnover company manufactures woven items like outwear and sportswear and exports them to Europe and other countries including Canada, Russia and Japan.

"We want to utilise our 20 years' export business knowledge and experience on design development learnt from our buyers."

The company plans to open three more outlets in the capital by the end of 2018, he said.

Md Akteruzzaman, director corporate, said their group launched 'Twelve' in 2012 after they found the local market, flooded with imported items from China, Pakistan and India, has brand potential.

"We thought if we are in the local market, we can reduce dependency on imports," he added.

Team Group along with five garment factories and one of the largest buying houses has own design section who knew well about the trends and fashion, he said.

In 2018, it opened four more retail outlets across the capital city.

Responding to a question about misuse of bonded warehouse facility, he said they would not have taken six years to expand their business had they indulged in any 'unethical practice'.

Md Shahidullah Azim, managing director of Classic Group, started its online brand 'Trent Wood' two years back mainly to grab the growing demand for e-commerce products.

Talking to the FE, Khaled bin Noor, a resident of Narayanganj, said he and his seven friends did Eid shopping from Sailor as the local brand offered quality products of varying designs and at affordable costs.

Some local brands operated by export-oriented garment companies are doing well in all segments including men, women and kids, he said.

He, however, suggested maintaining the same quality and price as some companies increase their price range once those become popular.

When asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) senior vice president Faruque Hassan said, "It is a good sign that garment exporters are launching their own brands in the local market."

Bangladesh's economy has been expanding and the purchasing capacity of the people is also increasing, he said, adding that the market potential is huge.